The estimation techniques that have been used in this context are least-squares (LS), method-of-moments (MM), instrumental variables (IV), generalized method-of-moments (GMM), maximum likelihood (ML) and Bayesian methods. Structural VAR models are estimated with a variety of methods that depend on the model setup and the type of structural (identifying) restrictions. ![]() ![]() Since then structural VAR models have become a standard tool for macroeconomic analysis. In a seminal paper Sims (1980) criticized traditional simultaneous equations systems and proposed using vector autoregressive (VAR) models as alternatives.
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